Quality of Earnings Analysis

Quality of Earnings Analysis

Quality of Earnings Analysis

Helping Searchers from LOI to Closing on Cash-Flowing Businesses

Helping Searchers from LOI to Closing on Cash-Flowing Businesses

We help searchers mitigate risks and identify red flags so they don’t overpay for their business.

We help searchers mitigate risks and identify red flags so they don’t overpay for their business.

We help searchers mitigate risks and identify red flags so they don’t overpay for their business.

Helping Searchers –
Before and Post Transaction

Helping Searchers –
Before and Post Transaction

Pre LOI Support

Pre LOI Support

  • Assit searchers pursue the right deals by analyzing the financials of target businesses and industry multiples.


  • Assist in calculating Debt-Service Coverage Ratio (DSCR) to ensure its above the SBA’s lower limit (typically 1.25)


  • Assist searchers by drafting the LOI and calculating Net working capital adjustment (PEG amount)


  • Go beyond Adjusted EBITDA & Calculate Free Cash Flow (FCF) to determine the true cash sustainability of the business.

Post LOI Support (QoE)

Post LOI Support (QoE)

  • Validate target business financials and ensure accuracy in the 3-statement Model.


  • Reconcile tax returns, Financial statements, and schedules.


  • Analyzing the monthly P&L, identifying significant trends, reviewing earnings, management adjustments (add-backs), and the balance sheet to substantiate the adjusted EBITDA.


  • Develop a 24-48 month QoE model to confirm adjusted EBITDA.


  • Analyze revenue, COGS, OPEX, Cash Proof, Price Volume, Net Working Capital,  and Cashflow Forecast.

Post-Transaction CPA Services

Post-Transaction CPA Services

  • Help you choose the most suitable legal entity structure to save on taxes in the long run. 


  • Allocate the purchase price in alignment with accounting standards and tax optimization objectives.  


  • Set up your accounting system to keep your finances accurate and organized. 


  • Implement the findings of our QoE report and identify areas of improvement.


  • Implement tax strategy to boost bottom line and generate generational wealth


  • Providing a one stop solution for your books, payroll & taxes

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QoE reports delivered in 2025

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QoE reports delivered in 2025

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Closed deals in 2025

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Closed deals in 2025

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Closed deals in 2025

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Reviewed transactions

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Reviewed transactions

A decade of Big 4 insight into Wall Street dealmaking

Years of Excellence

Experience really does matter when it comes to Quality of Earnings analysis, and fortunately, we have plenty of that at Prosolve CPA. I spent nearly a decade at Deloitte, focusing on Buy-Side due diligence, primarily working with Wall Street clients. This rich experience forms the foundation of Prosolve CPA. Our robust background in buy-side due diligence makes our focus crystal clear—helping searchers and entrepreneurs make smart, informed decisions. We've seen firsthand how tailored advice can shape successful deals. In fact, this year alone, Prosolve CPA has successfully assisted over 15 self-funded and traditional searchers —offering them customized guidance.

How Our QoE analysis Helps You Avoid Buying The Wrong Business

Revenue Analysis and Recognition

Revenue Analysis and Recognition

We assist searchers in evaluating revenue recognition practices during due diligence to ensure accurate financial representation. By analyzing accounting policies, customer contracts, and sales processes, we identify potential discrepancies and assess the sustainability of revenue streams, safeguarding searchers from overvaluation and financial misrepresentation.

Net Working Capital

Net Working Capital

We help searchers accurately evaluate Net Working Capital (NWC) during acquisitions, ensuring a fair valuation and protecting against hidden costs. By thoroughly analyzing current assets and liabilities, identifying essential adjustments, and establishing a balanced NWC peg, we safeguard buyers from overpaying and preserve their liquidity after the deal closes.

Verify Addbacks to Adjusted EBITDA / SDE

Verify Addbacks to Adjusted EBITDA / SDE

We scrutinize addbacks to EBITDA, ensuring only valid adjustments like non-recurring, personal, or discretionary expenses are considered. This prevents inflated valuations and uncovers potential red flags. Our analysis safeguards searchers from overpaying and ensures a true reflection of the business’s earning potential.

Cash proof analysis

Cash proof analysis

We conduct Proof of Cash analyses to confirm the accuracy and reliability of a business's financial records during acquisitions. By thoroughly examining cash inflows, outflows, and bank reconciliations, we uncover discrepancies, hidden risks, or possible fraud—empowering buyers to make confident, informed decisions based on trustworthy financial data.

Searchers from World-Class Schools Choose Us

Industries We’ve Closed Deals In

Industries We’ve Closed Deals In

Diverse Sectors, Proven Success

  • woman kissing brown short coated dog

    Pet Care

  • Aerospace

  • E-commerce

  • man putting medical bandage on left foot of person

    Janitorial Services

  • woman kissing brown short coated dog

    Pet Care

  • Aerospace

  • E-commerce

  • man putting medical bandage on left foot of person

    Janitorial Services

  • Manufacturing

  • Healthcare

  • HVAC Industry

  • Manufacturing

  • Healthcare

  • HVAC Industry

  • A room filled with lots of boxes and boxes

    Distribution

  • A MacBook with lines of code on its screen on a busy desk

    Tech

  • a building with a car parked in front of it

    Facilities Management

  • A room filled with lots of boxes and boxes

    Distribution

  • A MacBook with lines of code on its screen on a busy desk

    Tech

  • a building with a car parked in front of it

    Facilities Management

Still have questions?

Your common questions, our straightforward answers.

How long does it take to complete a QoE?

Typically, we advise our clients to plan for around 4 weeks to complete a quality of earnings review during due diligence. However, if the seller is responsive, the process can often be completed within 3 weeks.

Is my deal too small for a quality of earnings review?

When should I reach out to you?

Does the QoE report provide a buy or don’t buy recommendation?

How much does a Quality of Earnings(QoE) cost?

Do you charge a fixed or flat fee?

Can we adjust the project scope if needed?

How long does it take to complete a QoE?

Typically, we advise our clients to plan for around 4 weeks to complete a quality of earnings review during due diligence. However, if the seller is responsive, the process can often be completed within 3 weeks.

Is my deal too small for a quality of earnings review?

When should I reach out to you?

Does the QoE report provide a buy or don’t buy recommendation?

How much does a Quality of Earnings(QoE) cost?

Do you charge a fixed or flat fee?

Can we adjust the project scope if needed?

Copyright © 2025 Prosolve CPA

Copyright © 2025 Prosolve CPA

Copyright © 2025 Prosolve CPA